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    Greater Caspian region weekly overview: October 4th



Weekly report about Caspian littoral countries

by: Ilham

Posted in:

Weekly Overviews, TAPI, News By Country, Azerbaijan, Russia, Turkmenistan, China, Iran, Iraq, Kazakhstan, Gas to Power, Caspian Focus

Greater Caspian region weekly overview: October 4th


Iran ready to increase gas delivery to Armenia by 6 times

Currently Iran barters 1 million cubic meters of gas per day (mcm/d) with Armenia, but the gas transition capacity of the pipeline is more than 6 mcm/d.

Ali-Reza Kameli, Head of National Iranian Gas Exports Company, announced on October 4th that Iran barters a cubic meter of gas with 3 kWh of Armenian electricity, but the negotiations continue to change this ratio.

He said that the capacity of pipeline on the Armenian side is lower than Iran, but the minimum gas transition capacity of this route is 1.1 billion cubic meters per annum (bcm/a), which is three times more than current level.

Kameli said that Armenia planned to build a new 400-kilovolt power transmission line towards Iran as a combined-cycle power plant and has asked Iran to supply the needed gas for this plant in future.

Iran plans to double CNG production

Iranian cars consume more than 21 mcm/d of Compressed natural gas (CNG), but government planned to double this volume, Shana quoted Ali Shams Ardekani, member of the Energy Committee of Iran Chamber of Commerce, Industries, Mines and Agriculture (ICCIMA) on October 4th.

Iran imported 1.3 billion liters of gasoline during March 21 - July 30 two times more than the same period in last year- amounting to over $800 million, Iran’s Oil Minister Bijan Namdar Zanganeh, said on September 6th. 

Supplying 21 mcm/d of CNG to domestic market had let to decreasing Iran’s gasoline consumption by more than 20 million liters per day.

A cubic meter of CNG (equals 1.35 liter) is sold at about 20 cent in Iran.

Iran studies various gas export options to EU

Iran is studying several gas export options to Turkey, Managing Director of the National Iranian Gas Company (NIGC) Hamid Reza Araqi said on September 3rd.

According to him, the best option is liquefying gas and exporting LNG, but other options are also is studied.

He said that alongside increasing gas production, Iran is optimizing the gas consumer sectors to decrease domestic consumption by 50 mcm/d. “Iran would be able to export 200 mcm/d of gas in four years,” he said.

Iran has already signed contracts and memorandum of understandings with Pakistan (22 mcm/d), Iraq (25 mcm/d) and Oman (27 mcm/d) to export gas. Iran also is talking with Iraq to export more 35 mcm/d of gas. Currently Iran exporting about 27 mcm/d of gas to Turkey.

Earlier Iran announced that $16 billion is needed to construct pipeline to transit South Pars field’s gas to EU. Iran also needs $2.5 billion to complete a 10-million ton per annum “Iran LNG” project.

India wants Peace pipeline revival

President Pranab Mukherjee said India should revive Peace gas pipeline (Iran-Pakistan-India) with Iran.

India must capitalise on opportunities being offered by the landmark nuclear deal between Iran and the P5+1 (China, France, Russia, the United Kingdom, US and Germany) and should work on reviving the Iran-Pakistan-India gas pipeline along with the development of the strategic Chabahar port in Iran.

India withdrew from Peace pipeline due to sanctions, but Pakistan signed gas deal with Iran to import gas in early 2015. However, neither Iranian side was completed nor Pakistan started piping in its soul yet.

It’s expected sanctions on Iran be lifted in early 2016 due to a nuclear deal, achieved on July 14.

Earlier, India said that it is ready to invest $15 billion in Iran.


Russia started gas export to Azerbaijan

Russia's Gazprom has started the supply of 6 million cubic meters per day of gas to Azerbaijan as of September 29.

The Magistral Gas Pipelines Department of SOCAR told Natural Gas Europe that Russia started delivery of 6 million cubic meters per day(mcm/d) of gas to Azerbaijan on September 29th through Haciqabul-Baku magistral gas pipeline. The source said that the total gas transit capacity of this pipeline is 12 mcm/d. "Currently, the Russian gas is transited through this 220-km pipeline to AzMeCo," he said.

SOCAR, Total co-operation enters new stage

State Oil Company of Azerbaijan Republic (SOCAR) is entering a new stage of cooperation with Total SA in the development of Azerbaijan’s second largest natural gas field.

Eric Meyer, planning development manager at Total Exploration & Production Azerbaijan B.V., announced on September 28th that the French company has completed the preliminary Front End Engineering Design (FEED) for the Absheron gas condensate field in the Azerbaijani sector of the Caspian Sea.

Meyer added that preparation work was being undertaken for the formation of JOCAP (Joint Operating Company Absheron Petroleum), where SOCAR and Total would each hold a 50% stake.

Vagif Aliyev, head of SOCAR's Investments Department, told Natural Gas Europe that “according to the terms of signed contract between two companies (in 2009) to develop Absheron gas field, in the exploration stage, Total should serve as operator, but during the operational stage of developing the project, it should adopt “cooperation” with SOCAR.” 

Azerbaijan's gas export decreases in January-August by 2%

Azerbaijan exported 5.38 bcm of gas in January-August, 1.7 percent less than the same period in 2014,

State Customs Committee reported.

Azerbaijan exports gas to Georgia and Turkey. 

According to the latest statistics, SOCAR (State Oil Company of Azerbaijan) produced  3.977 bcm in January-July 2015, which is  9,6 percent less than result of the same period in the last year. SOCAR vice-president for production and transportation Ramin Gurbanov said earlier that the production level of Socar's operated fields is expected to reach 6.5 bcm in 2015.

The output from Shah Deniz Stage 1 (SD1) increased by 9.5 percent to 5.2 billion cubic meters (bcm) in first half of 2015, while the total Azerbaijan’s commercial gas production stood at 10.673 bcm.


Turkmenistan supplied 125bcm of gas to China

Turkmenistan delivered 125 billion cubic meters of natural gas to China from 2009 to August 2015.

The Ministry of Oil and Mineral Resources of Turkmenistan issued a statement on September 28th saying that, leading among other gas suppliers, Turkmenistan has become a strategic partner for China.

Chinese CNPC also develops Turkmenistan's Bagtyyarlyk gas field on the bank of the Amu Darya.


Kazakhstan eyeing possibility to transport hydrocarbons to India

Kazakhstan is considering the possibility of transporingt its hydrocarbons and to ensure Russian oil and gas transit to India, IA Novosti-Kazakhstan quoted the KazTransOil Director General Kairgeldy Kabyldin as saying on October 1st.

During a panel session at the 10th International Energy Forum Kazenergy, titled “The change in energy development in Europe and the consequences for Central Asia”, Kabyldin said that currently the directions of oil and gas flow are being transformed.

“Earlier we were all aiming at Europe, the Baltic and the Black seas, but now the flows are reoriented to the east,” he said.

He added that Russia’s oil and gas are going today to the Pacific and China, and Kazakhstan is today transiting Russian oil and Turkmen gas to China.